This article is from my technical perspective based on price action for 3 forex pairs: USD/JPY, GBP/USD and EUR/USD.
The tidbits relate to how I use Fibonacci levels (on "1 Month", "1 Week" and "4 Hours" charts); and how I'm seeing price action on "4-hour" chart at the moment.
Figure 1: “1 Month” charts of USD/JPY, GBP/USD and EUR/USD.
From figure 1, I’ve used Fibonnacci retracement (or Fib.) levels to get a simplified view of possible support and resistance levels. Those levels nearest to current price are colored in red (for resistance) and blue (for support).
For both USD/JPY and GBP/USD, I’ve included a secondary pair of Fib. levels (their widths are thinner than the primary Fib. levels) as price seems to react well around these levels also.
For USD/JPY, USD has been gaining more buyers than JPY and we’re seeing the tallest, bullish momentum candle for the current month. The nearest resistance (in red) levels could be a good place for profit-taking after such a vigorous up move.
For GBP/USD, its current candle is nearer towards the blue level than the red level. Its price is mildly bearish for this month.
For EUR/USD, its price is reaching towards the blue level. Overall, its p…
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